Smart Sand Inc. announced results for the second quarter 2020. Revenues were $26.1 million in the second quarter of 2020, compared to $47.5 million in the first quarter of 2020 and $67.9 million in the second quarter of 2019. Included in revenues were $14.0 million, $1.3 million, and $16.3 million of shortfall revenues for each respective period.
Revenue in the second quarter of 2020 was negatively impacted by depressed oil prices driven by continued oversupply relative to the decreased demand due to the COVID-19 pandemic.
Overall tons sold were approximately 208,000 in the second quarter of 2020, compared with approximately 757,000 tons in the first quarter of 2020 and 741,000 tons in the second quarter of 2019. Total volumes sold were negatively impacted by depressed oil prices driven by Organization of the Petroleum Exporting Countries (OPEC) and oversupply and decreased demand due to the pandemic.
Net income was $4.6 million, or $0.12 per basic and diluted share, for the second quarter of 2020, compared with net loss of $84.0 thousand, or $0.00 per basic and diluted share, for the first quarter of 2020 and net income of $14.3 million, or $0.36 per basic and diluted share, for the second quarter of 2019. Shortfall revenue in the current period offset the decline in total volumes sold.
Charles Young, Smart Sand’s chief executive officer, stated, “In the second quarter, the United States faced an unprecedented drop in drilling and completions activity due to the decline in worldwide oil demand caused by the current COVID-19 coronavirus pandemic. We reacted quickly and decisively to reduce our cost structure and maintain our liquidity. During the second quarter, we were able to reduce debt while maintaining our cash balances. At quarter end, we had approximately $25 million in liquidity from cash and availability under our credit facility. As we have demonstrated in previous downturns, Smart Sand has the wherewithal to navigate through periods of market uncertainty and to come out a stronger competitor when market activity returns to normal levels. I want to thank all of our employees for their commitment and sacrifice to support Smart Sand during these difficult times. We will continue to stay true to our core principles of maintaining a strong balance sheet and delivering sustainable high-quality sand and logistics services to the energy industry. Smart Sand is built to last.”